Metso and Outotec have agreed to merge, creating a leading company in process technology, equipment and services serving the minerals, metals and aggregates industries.
The combined company, comprising Metso Minerals and Outotec (but excluding Metso Flow Control), will be named Metso Outotec.
A €1.55 billion ($1.74 billion) backup and term loan facilities agreement has been closed with Nordea Bank initially for the benefit of Metso but which, upon completion of the transaction, will transfer to Metso Outotec to address certain potential financing and refinancing needs arising from or in connection with the transaction
Metso Flow Control to become a separately listed independent flow control equipment and services company under the name of Neles.
Metso Outotec will leverage the strengths of both companies, including technology and R&D, product and process excellence, scale and global service offering footprint. The combination will deliver significant benefits to all stakeholders.
Metso Outotec’s headquarters will be in Helsinki, Finland and it will maintain its listing on Nasdaq Helsinki.
“This is an industry-shaping combination that joins two uniquely complementary companies. Metso Outotec will be in an excellent position to take advantage of market opportunities globally, which together with the significant synergies, will drive strong shareholder value. I am convinced that Metso Outotec will provide interesting opportunities to its employees, customers and partners,” said Outotec Chairman Matti Alahuhta.